Rate hikes for Ukiah's waste hauler approved

The Ukiah City Council this month approved the first rate increases requested by the city's waste hauler since new garbage contracts were approved last year.

At the last council meeting, Finance Director Gordon Elton explained that the new contracts "define a process for notifying the council of the annual adjustments to the rates," and it is "a much more involved process" than the previous one.

"One of the big costs that is defined is the cost of fuel: the transport from the curbside to the (Ukiah Valley Waste) Transfer Station and from there to a disposal site is a key part of this service," said Elton, explaining that the fuel component is "driven by the fuel index, and "this portion of the rate actually went down from where it was in 2011. We've seen the price at local gas stations here go up and down pretty dramatically in the past couple of weeks."

Elton said the "other parts of the rates are driven by the (Consumer Price Index), and the end result is the rates are going up, based on the formula, by a very, very small amount."

The rates for the transfer station are going up a half of a percent, or 35 cents a ton, and the curbside collection rate is increasing by .7 percent, or 13 cents a month for a 32-gallon can.

"We reviewed their understanding of the formula and agree that the cost calculation is within the terms of the contract," said Elton, requesting the council's approval.

"Aren't the increases required (as part of the contracts) whether we approve them or not?" asked Council member Phil Baldwin, and City Attorney David Rapport said "the council has the right to satisfy itself that the formula was properly applied."

Most council members said they were satisfied, and Council member Benj Thomas said: "I think this is further evidence that we set into place a process that is equitable and workable."

No audience members addressed the council, and Rapport pointed out that "this rate increase is actually smaller than would have occurred under the old contract."

According to Elton's staff report, if the old rate calculation were used, the price for a 32-gallon can would increase by 19 cents a month, six cents more, and the rates for the transfer station would increase by 10 cents more, or 45 cents a ton.

The council approved the rate increases with Vice-Mayor Doug Crane recusing himself.

Justine Frederiksen can be reached at udjjf@pacific.net, on Twitter @JustFrederiksen or at 468-3521.